Hodlnaut Is Fighting To Survive, Stops Withdrawals

Hodlnaut is fighting to survive the heat as the market liquidity trend for cryptocurrencies is still going strong.

Hodlnaut disclosed that it has stopped accepting deposits and withdrawals on its platform until things are back to normal.

Transactions are halted by Holdnaut

The Asian cryptocurrency lending firm has reportedly stopped accepting cryptocurrency payments and withdrawals right away. The exchange stated that its most recent action was motivated by unfavorable market conditions and that it will now concentrate on regaining and stabilizing its assets.

As soon as Hodlnaut revealed that it is collaborating with a law firm to determine its recovery strategy, the lending platform ceased token swaps and deposits.

The company added that after consulting with its experts, it has decided that ceasing its core services is required. A solid recovery strategy is being created, and the company is being reorganized for the best performance.

The platform has withdrawn its earlier request for a license from the Monetary Authority of Singapore. Along with 14 other cryptocurrency exchanges, Hodlnaut has applied for a license from the authority to start providing token swaps. To offer token swap services, a regulated digital good, a license is necessary.

But Hodlnaut emphasized that it will keep paying out pending interest to current clients. Aside from the official accounts, the site also deactivates some of its social media profiles.

Along with deleting its YouTube channel, Hodlnaut also restricted the use of its founder Juntao Zhu‘s Twitter account. Following the most recent development, the crypto loan company has taken significant measures to protect itself from the public.

Now, Hodlnaut is fighting to survive the terrible crypto-economic situation.

Claims of Liquidity Weigh Down the Crypto Market

Following the collapse of the cryptocurrency market, a wave of liquidity problems swept the digital asset sector. Analysts have identified inflation in May 2022 as the primary cause of the crypto market crash.

The massacre affected the whole cryptocurrency ecosystem as the majority of exchanges fought to survive. Many businesses have dramatically cut their workforces in order to recoup operating earnings.

As it closes owing to the market correction, Celsius is the ideal illustration of a cryptocurrency company that lacked the liquidity to remain operational. Celsius had up to $12 billion in client assets as of May, which made headlines due to its failure to settle investors.

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